Dabur Reaches Out to Distributors as Quick Commerce Disrupts General Trade
As modern retail and online platforms gain ground, Dabur has restored its focus on supplier partnerships to secure margins and maintain its dominance in general trade.
Dabur stock lacks triggers amid weak economic conditions. “Our basic trade stockist partners are not just channels of distribution; they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India,” stated CEO Mohit Malhotra.
The company aims to secure and enhance distributor returns under its new “Vision” strategy. Dabur recently engaged with AICPDF members to discuss emerging opportunities and the evolving market landscape.
Dabur undertook a one-time inventory correction in the September quarter of FY24, reducing inventory levels with basic trade partners from 30 to 21 days to prevent supply excess. This decision aimed to address market dynamics and support distributor partners, resulting in a temporary sales dip during the quarter.
While basic trade remains a significant revenue driver, newer channels such as e-commerce, modern trade, and quick commerce are gaining traction. Together, these channels contributed 24% to Dabur’s business in FY25.
Quick commerce, though a small portion of sales (2-7%), is rapidly growing due to urban convenience and discount-driven consumer behavior.
In response to shifting consumption patterns and increasing pressure from online sales channels, Dabur India reaffirmed its commitment to basic trade partners through outreach to AICPDF, representing over 450,000 FMCG distributors and 13 million kirana shops.
